Inventory management tips & techniques for wholesalers

Running a successful Wholesale Business is not all about purchasing products in bulk. It also involves effective inventory management and selling products ahead. Keeping an inventory is compulsory for wholesalers as it allow them to be aware of the number of products in their warehouse as they cannot afford to lose customers due to a shortage or the unavailability of products. Keeping a constant eye on your inventory is a hassle especially since you cannot stock your warehouse once and then forget about it.
Some think it is an arduous process. It’s not because neither does it involve a set of complex mathematical formulas nor are there any hard and fast rules to abide by. It is a simple process in which you must take care of a few tips and guidelines while thinking about this particular subject. Following are a few things which can make the whole process a lot easier for you.
Inventory Forecasting
Inventory management is actually inventory forecasting or inventory planning. It is a transitional phase right from the point when Wholesale Products are added to the warehouse till they are sold. An excellent inventory management system needs foolproof planning so that wholesale traders can arrange the arrival of new goods exactly when the last products have is moved out of the warehouse. On the other hand, poor inventory management cannot just increase inventory management cost but can also wash away the chances of being successful in business field. Therefore, inventory management is an inevitable task you need to master, if you want to run a successful wholesale business.
Process of order cycle
Order cycle can be established on the basis of regular demand forecasting and it is essential so that regular ordering quantities can be set up and economic relationship between wholesale products ordering costs, shipping cost and related costs can be understood. When demand is regular and you know that certain quantity of Wholesale Products will be sold at a steady pace, you can schedule replacements on regular basis as well. All you need is to study your inventory trends closely and develop a system accordingly. It will help you in avoiding inventory stock-outs and also minimize related costs. You can also include low return items to avoid unnecessary cost.
Apprehending the trends
Being a wholesale trader, you will have to keep your eyes open and be more alert than others to stock your inventory according to the latest trends and current stats. If you are running out of products at any given time, it means sellers are also running out of products so they can demand more products from you. What if your manufacturers or suppliers have closed the supply when you place your order for more products?
It can be really costly for you as a wholesale trader to refuse your customers when they are in dire need. The solution is that you must be able to apprehend the trends and must have real time information to make quick and accurate decisions before your inventory gets depleted. Accurate forecasting can help you save money and earn big profits. Make sure forecasting is done on the basis of real-time information otherwise you can end up with shelves overfilled with stocks.